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U.S. imposes 25% tariffs on Brazilian exports, Brazil readies counter‑measures
The United States announced a 25 % additional tariff on a broad range of Brazilian products, effective 22 July. The measure covers roughly US$ 11 billion in Brazil’s U.S.‑bound exports, with exemptions for vaccines, some minerals, fertilizers and civil‑aircraft parts. Brazil’s government responded with a multi‑pronged plan: Vice‑President Geraldo Alckmin said Brazil will invoke the Reciprocity Law to potentially mirror the tariffs; the Ministry of Development and the state development bank BNDES are expanding credit lines for affected firms; ApexBrasil is launching a R$ 130 million diversification programme aimed at EU, ASEAN and other markets for the 2,400 companies (about 18 % of Brazil’s U.S. exports) hit by the “tarifaço”. Foreign Minister Mauro Vieira denounced the tariffs as “unacceptable external intervention” and called for WTO dispute settlement. Sectors most impacted include wood, machinery, footwear, furniture, ceramics, sugar and agribusiness, with estimates of US$ 4.6‑7.4 billion at risk. Producers are already redirecting shipments to Europe, Argentina and the Middle East. Financial markets reflected the shock: the dollar rose to around R$ 5.10, the Ibovespa fell about 1 %, and oil prices climbed amid heightened Middle‑East tensions.